In the first quarter of 2025, Saudi Arabia experienced a deceleration in its economic growth, with its GDP growth rate declining to 3.4%. This marks a significant drop from the 4.5% growth recorded in the same period last year, as per the data updated on June 9, 2025.
The year-over-year comparison highlights a slowdown in momentum for the kingdom's economy, echoing broader global economic trends and reflecting local challenges. As the world’s largest oil exporter, Saudi Arabia's economy remains heavily influenced by oil price fluctuations and global market dynamics, factors which may have contributed to the downturn in growth.
The data indicates a need for the country to bolster diversification efforts and reduce its dependency on oil, a challenge it has been grappling with as part of its Vision 2030 agenda. As Saudi Arabia adapts to these economic shifts, the easing in GDP growth may serve as a catalyst for further reforms and investments in non-oil sectors. Analysts will be watching closely to see how the kingdom navigates these uncertain economic waters in the coming months.
